Explaining the lead–lag pattern in the money–inflation relationship: a microsimulation approach
Elena Deryugina and
Journal of Evolutionary Economics, 2021, vol. 31, issue 4, No 2, 1113-1128
Abstract We set up an agent-based model where the parameters of firms’ pricing heuristics are determined through evolutionary learning. We argue that there are several key ingredients that result in the emergence of the lead–lag pattern in the money growth–inflation relationship. First, a realistic representation of money creation through a lending mechanism is essential. Second, there must be considerable heterogeneity in the distribution of newly created deposits and in the associated changes in demand at the individual firm level.
Keywords: Money supply; Inflation; Cantillion effects; Evolutionary learning; Agent-based model (search for similar items in EconPapers)
JEL-codes: C63 D83 E31 E51 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00191-021-00741-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joevec:v:31:y:2021:i:4:d:10.1007_s00191-021-00741-8
Ordering information: This journal article can be ordered from
Access Statistics for this article
Journal of Evolutionary Economics is currently edited by Uwe Cantner, Elias Dinopoulos, Horst Hanusch and Luigi Orsenigo
More articles in Journal of Evolutionary Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().